The flipping fund closes to new investment in two weeks. If you are thinking of investing, time grows short.
In related news, I am in negotiation with an established operator in Las Vegas to provide deal flow for cashflow properties. Once I know I can deliver these properties, I will be able to offer them to fund subscribers and IHB readers.
The IHB had tremendous traffic again this week. Several posts were picked up by Patrick.net, and Barry Ritholtz at the Big Picture linked to the IHB too. Our RSS feed climbed to over 4,000 this week as well.
My favorite cartoons of the week were the one above, and the one below from the Life of Brian series. My Photoshop skills are improving. I think the realtor logo blended into the hat well enough that it looks like it was part of the photo.
When asked about the rate of appreciation they expect, new home buyers consistently say they believe they will get 10% annual appreciation. Since wages don't go up 10% per year, I don't know how that is supposed to occur, but that's what people believe.
Perhaps that particular form of innumeracy also applies to long-term home owners who live in Irvine....
Home Purchase Price … $665,000 Home Purchase Date .... 9/28/1999
Net Gain (Loss) .......... $1,110,555 Percent Change .......... 167.0% Annual Appreciation … 10.0%
Cost of Ownership ------------------------------------------------- $1,888,888 .......... Asking Price $377,778 .......... 20% Down Conventional 4.34% ............... Mortgage Interest Rate $1,511,110 .......... 30-Year Mortgage $362,262 .......... Income Requirement
$7,514 .......... Monthly Mortgage Payment
$1637 .......... Property Tax $267 .......... Special Taxes and Levies (Mello Roos) $157 .......... Homeowners Insurance $400 .......... Homeowners Association Fees ============================================ $9,975 .......... Monthly Cash Outlays
-$1471 .......... Tax Savings (% of Interest and Property Tax) -$2048 .......... Equity Hidden in Payment $596 .......... Lost Income to Down Payment (net of taxes) $236 .......... Maintenance and Replacement Reserves ============================================ $7,287 .......... Monthly Cost of Ownership
Cash Acquisition Demands ------------------------------------------------------------------------------ $18,889 .......... Furnishing and Move In @1% $18,889 .......... Closing Costs @1% $15,111 ............ Interest Points @1% of Loan $377,778 .......... Down Payment ============================================ $430,666 .......... Total Cash Costs $111,700 ............ Emergency Cash Reserves ============================================ $542,366 .......... Total Savings Needed
Property Details for 11 MONTIA Irvine, CA 92620 ------------------------------------------------------------------------------ Beds: 5 Baths: 4 full 1 part baths Home size: 4,200 sq ft ($450 / sq ft) Lot Size: 11,000 sq ft Year Built: 2000 Days on Market: 4 Listing Updated: 40422 MLS Number: S630687 Property Type: Single Family, Residential Community: Northwood Tract: Arbc ------------------------------------------------------------------------------ ***MAGNIFICENT MINI-ESTATE IN AWARD WINNING ARBOR CREST***Gated and located near end of cul-de-sac, this recession proof and feng shui positive semi custom home has more upgrades than this software will allow. Features cathedral ceilings in living, dining and foyer, incredibly light and bright with maximum east facing sun exposure, upgraded marble flooring, granite counters, custom paint and backyard features custom built-in BBQ, spa and a gazebo with a huge grassy area. This home also features private access to the world famous Hicks Canyon Trail, site of the 2008 OC Marathon. Community amentites include Meadowood swimming facilties, Citrus Glen Tennis Center and NW Montessori Pre-School.
Recession Proof? Sometimes, Mike is really funny. How about those great amentites?
Our second Exclusive Access Property today is a 2bd/2ba 1,221 square foot condo in Mission Viejo priced at $299,900. This home is not yet on MLS but will be in 7 days.
If you want to learn more about this property, please contact us:
We've got two Exclusive Access Properties today. The first is a 2bd/2ba 977 square foot condo in Lake Forest priced at $189,900. This home is not yet on MLS but will be in 7 days.
If you want to learn more about this property, please contact us:
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